FIPB clears 34 proposals

New Delhi: The proposal of Mahindra and Mahindra to set up a joint venture company with BAE Systems was approved by the Foreign Investment Promotion Board (FIPB).

The joint venture will develop, manufacture and provide through life service support for land systems defence equipment. This was among the 34 proposals involving foreign direct investment of about Rs. 1,614.90 crore in various fields, including information technology, financial services, steel, road transport and highways and telecommunication, which were approved by the FIPB.

Mahindra and Mahindra is to hold a 74 per cent stake in the new joint venture, while BAE Systems is to hold the remaining 26 per cent.

According to an official statement, the two companies will now finalise detailed planning and structural arrangements to commence operations during the second half of the year.

The manufacturing facility, which is to come up in Faridabad, will initially employ 50-60 people and is likely to include the up-armouring of Rakshack vehicles, axe vehicle production apart from starting the process of developing a mine resistant ambush protected vehicle suitable for the country.

Among the other proposals cleared include those of Barwa International of Qatar involving FDI inflow of Rs 400 crore for conversion of operating company into an operating-cum-holding company to make further downstream investment. A Rs 300-crore proposal of the Mumbai-based HBS Realtors Pvt Ltd for a similar arrangement was also approved.

A proposal of the Singapore-based Standard Chartered IL&FS Asia Infrastructure Growth Fund Company Pte Ltd involving FDI of Rs 124.23 crore to acquire, by way of transfer, equity shares to carry out the activities in infrastructure and services sector was also given the nod.

Similarly, a Rs 200-crore proposal of the Hyderabad-based Universal Biofuels to incorporate and make downstream investment in subsidiaries was approved. It would now also issue and allot equity shares to eligible non-resident investors through participation in IPO, and or in the form of any pre-IPO placement and for any preferential issue of equity shares that may be issued by the company at a future date.

The proposal of Japan-based Sumitomo Corporation involving an FDI inflow of Rs 160 crore was also approved.

A proposal of the US-based Dow Jones & Company to make a wholly owned subsidiary to carry out the publishing of facsimile editions of newspapers were among the 13 proposals that were deferred by the FIPB.